After ending 1,5% higher on Monday, the JSE was back in the red on Tuesday morning following a decline in the Dow overnight. However, the local bourse was being cushioned somewhat by the softer rand and good interest in direct miners.
By 12.11pm, the all-share index was off 0,15%. Resources were up 0,23%, gold miners added 0,62% and the platinum miners advanced 1,61%. Industrials were 0,35% lower, financials eased 0,57% and banks retreated 0,19%.
The rand was bid at R7,22 to the dollar from R7,20 when the JSE closed on Monday, while gold was quoted at $667,75 a troy ounce from $666,70/oz at the JSE’s last close.
A local equities trader said the market was consolidating along with other world markets as the uncertainty that has characterised the markets recently appears to be calming down.
“The uncertainty is dissipating and the markets are more settled. But there is not much direction and the markets are a bit sluggish. But we are doing quite well considering where we were a few weeks ago,” said the trader.
He added that mining stocks were garnering some interest amid firmer gold and platinum prices.
Going forward, he expects the JSE will eye local inflation data, due this week, and the Fed’s decision on interest rates.
For the rest of the day, the JSE is likely to continue watching the world markets in the lead up to Wall Street’s opening.
The Dow ended down 56,74, or 0,4%, at 13 322,13 on Monday, while Tokyo shares closed down just 14 points and the FTSE 100 was 34 points lower following a public holiday on Monday.
On the JSE, London-listed resource giant Anglo American moved down R2,56 to 404,44 rand and BHP Billiton was off one cent at R200.
Sasol was up R2,65 at R277,08 following a slightly higher oil price.
Among gold shares, AngloGold Ashanti was down R1,32 at R272, but Gold Fields added R1,20, or 1,13%, at R107 and Harmony was up 115 cents, or 1,75%, to R66,75.
Among platinum stocks, Anglo Platinum collected R8,49 to R928,49, Impala Platinum added 477 cents, or 2,53%, to R193,27 and Northam Platinum advanced 71 cents or 1,53%, to R47,01.
Brewer SABMiller was off R4,06, or 2,1%, at R188,93, but services group Bidvest collected 75 cents to R140,75.
Among banks and financial stocks, Standard Bank was off 28 cents at R103,22, Absa shed 104 cents to R131,86 and Nedbank was off 160 cents at R135,50.
Old Mutual plc eased 48 cents, or 2,09%, to R22,50, but Sanlam advanced 35 cents to R21,10. — I-Net Bridge